Free Essay

Strategic Management

In: Business and Management

Submitted By Kidman
Words 2373
Pages 10
Best Western enters Myanmar
Best Western International (BWI), the U.S.-based global hotel chain, has opened its first hotel in Myanmar, the Best Western Green Hill Hotel in Yangon, company sources say.

BWI becomes the first U.S. hotel company to establish a presence in Myanmar, following the recent political and economic reforms enacted by the Thein Sein administration that have drawn foreign investors’ interest.

The hotel is situated in the heart of Yangon, just 15 minutes’ drive from the Shwedagon Pagoda. It has 189 air-conditioned rooms featuring 32-inch flat-screen televisions with international satellite channels, bathrooms with bathtubs and showers, and complimentary Wi-Fi.

It also offers three meeting rooms offering more than 200 square metres of functioning space for business people. There is also a restaurant that serves a selection of Chinese, Asian and international cuisine.

“The launch of Best Western International’s first hotel in Myanmar means the company now has a presence in nine ASEAN countries. Best Western International is planning to announce further developments in Myanmar in the near future,” BWI said in a statement.

Next year the company will launch its first hotel in the country’s capital, Nay Pyi Taw, the statement said.

“There is no doubt that Myanmar is one of the world’s hottest hotel markets at present, with a major increase in new hotel supply needed to cater for a huge influx of guests. So it is vital that hotel owners in the country choose the right partners to ensure optimum performance at their properties,” said Glenn de Souza, the firm’s vice president of international operations for Asia and the Middle East.

“Best Western International wants to form long and lasting partnerships in Myanmar; we want to be here for the long-term, to help grow the country’s tourism industry. Our partnership with the Green Hill Hotel is just the start of our plans for Myanmar.”

De Souza also expressed confidence in the Myanmar project, adding that BWI’s proven track record in the Asian hotel market will enable the Green Hill Hotel to not only increase occupancy and average rates, but also broaden its geographical guest mix.

Best Western International is the world’s largest hotel chain with more than 4,000 independently owned and operated member hotels in more than 100 countries worldwide. Since 1946, Best Western has grown into an iconic brand that hosts 400,000 guests worldwide each night.
Gov’t to provide electricity for 10,000 villages next year
Tuesday, December 24, 2013 Comments (0)
The Myanmar government is planning to provide electricity next year for 10,000 villages that have yet to access electricity, said Myint Oo, deputy director-general at the Ministry of Livestock, Fisheries and Rural Development.

Currently, only 20,000 of the 64,000 villages in Myanmar have access to electricity.
“We didn’t set a deadline to give electricity to all the villages. Next year, we will work to provide electricity for 10,000 villages. In 2015, we will provide electricity to another 10,000 villages. More than 40,000 villages still do not have electricity access,” said Myint Oo.

The World Bank, Asia Development Bank, and Japan International Cooperation Agency have pledged to help with the electricity supply for Myanmar villages, he added.

“As of today, we’ve given light to more than 20,000 villages. This is what we have done in less than one year. Some villages also did it on their own. Next year, we plan to give electricity to 10,000 villages, but budget is important,” said Myint Oo, adding that the government will need to work together with local and foreign aid groups to reach its ultimate target of universal access.
This is welcome news for village residents.

“Although ours is a country rich in natural resources, we can’t even access electricity yet. If the government really wants to develop rural areas, electricity plays a crucial role in improving our living standard,” said Than Myint from Shwe Pan Taw Village, Thegon Township, Bago Region.
Construction starts on Japan-Myanmar JV industrial complex in Yangon
Monday, December 02, 2013 Comments (0)
The construction of a joint venture industrial complex between Japanese and Myanmar companies started Saturday in Yangon with an official ribbon-cutting and ground-breaking ceremony held at the site.

The industrial complex, located inside the Thilawa Sepecial Economic Zone, about 23 kilometers south of the city center of Yangon, is expected to draw businesses involved in apparel, car manufacturing and other services, upon its completion in 2015.

The consortium, joined by three major Japanese trading firms, the government of Myanmar and nine local Myanmar companies, plans to prepare roads, sewage treatment equipment and other infrastructure at the 400-hectare area inside the 2,400-hectare Thilawa Special Economic Zone.

Mitsubishi Corp., Marubeni Corp. and Sumitomo Corp. will jointly hold a 49 percent stake in the consortium, to be capitalized at $100 million, while the remaining 51 percent will be owned by the Myanmar government and local private companies.

Speaking at the ceremony held at the construction site, Set Aung, chairman of the Thilawa Special Economic Zone management committee, said the event signifies "closer and stronger relationship and friendship" between Myanmar and Japan, adding that the project would open up "a new chapter" in the history of Myanmar, a largely untapped market in Asia.

The development of the Thilawa SEZ, the first-ever special economic zone in Myanmar, would not only contribute to the economic development of the country, but also to the locals residing in and around the area with increased employment opportunities, income, and consumption, he said.

He expressed hope that the project would attract more foreign investment to Myanmar, and pledged cooperation with the developers and the investing companies for the successful establishment of the SEZ.

"We stand ready for better coordination, facilitation and to provide any necessary assistance to all the stakeholders, especially to the developers as well as investors," Set Aung said.

Yoshihiko Isozaki, parliamentary vice minister of economy, trade and industry of Japan, who attended the ceremony as a guest of honor, said in his speech that the project would create job opportunities for ordinary Myanmar people.

"It is important that job opportunities can be created by receiving investments from abroad, so that the people of Myanmar can enjoy the fruits of the reforms," Isozaki said.

Many Japanese companies remain undecided about investing in Myanmar due to procedural complications, and so solving such issues to pave the way for potential investors to actually come in and create jobs for the locals would be the key to the success of the Thilawa SEZ, he added.
Japan launches initiative to “export” postal system to Myanmar
Tuesday, December 10, 2013 Comments (0)
Japan has launched an initiative to modernise Myanmar’s postal system by introducing its fast, efficient and precise services in the Southeast Asian country.

The initiative is part of Prime Minister Shinzo Abe’s economic revitalisation plans featuring exports of its advanced technologies and services to other countries, especially developing countries in Asia.

Japan and Myanmar have held three rounds of working-level talks so far, but Japanese officials believe it would take a lot of time to introduce the Japanese-style postal services in Myanmar where people are not even used to writing postal codes.

“It takes a week or so in Myanmar to get mail and parcels delivered from the northernmost to the southernmost part of the country,” said Masatoshi Kawano, a Ministry of Internal Affairs and Communications official involved in the initiative.

“But media reports that postal items frequently get lost in Myanmar may be exaggerated,” Kawano said.

“We all know Myanmar’s economy will grow more, so better postal services will definitely be necessary to support growth.

“The Japanese postal system delivers 98 percent of all postal items within two days, no matter where in the country the sender and receiver are.

During an inspection of Tokyo post offices on the sidelines of bilateral postal talks in May, Myanmar Communications and Information Minister Myat Hein appeared to have been impressed with Japanese workers sorting items efficiently and serving customers well.

In September, Myat Hein met again with his Japanese counterpart Yoshitaka Shindo to confirm their commitment to start actual work in 2014, while Vietnam became the second country to reach a similar postal support agreement with Japan.

Kawano, director of the International Affairs Office at the ministry’s Postal Services Policy Department, cited the difficulty of teaching local workers the Japanese way of providing postal services as his major concern.
Myanmar vows to build more power plants to meet public demand
Thursday, November 14, 2013 Comments (0)
Myanmar Minister of Electric Power U Khin Maung Soe has stressed the need to build more power plants in the country to meet public demand, official media reported Wednesday.

U Khin Maung Soe made the emphasis at the ongoing parliament session in clarifying the planned electricity price hike.

Under a 30-year electricity strategic development plan, the country's power supply till the fiscal year 2012-13 should have been 4,910 megawatts, he said, while blaming it got only 3,600 mw till to date, reported the New Light of Myanmar.

Given the public demand of 8,929 mw, there was a shortage of around 5,000 mw as the country failed to build seven hydropower, three thermal and two coal-fired power plants, he clarified, attributing the failure to financial difficulties.

He further clarified that Myanmar's power consumption, which has increased by 15 percent annually, is likely to reach 3,000 mw by 2015 with summer power demand estimated to stand at 2,370 mw in 2014.

He disclosed that the currently running power stations can generate 1,655 mw in maximum, emphasizing the need to build three power plants each with an installed capacity of 500 mw at a cost of 2.1 billion US dollars to meet the power demand of 3,000 mw in 2015 and 4,000 mw in 2016.

He called for local and foreign investment in the projects, saying that the government alone cannot afford to implement it.

Meanwhile, the parliament on Tuesday temporarily suspended the electricity price hike by the electric power ministry in response to an interim proposal urging to bring down the electricity price hike.

The parliament made the decision following days' protest against the measure introduced by the authorities, adding the issue will remain under review until the start of the 2014-15 fiscal year.

The ministry's Yangon City Electricity Supply Board announced on October 29 it will raise by nearly two times the electricity prices starting immediately from the month of November in order to cover the production and purchase cost of electricity to a certain extent.

Myanmar to open over 800 private gas stations
Monday, December 23, 2013 Comments (0)
The Myanmar authorities have granted green light to the opening of 801 private fuel filling stations in the country this year, local media reported Sunday.

Altogether 1,243 applicants have sought license for operating private gas stations since 2010, said the 7-Day News, adding that the remaining 442 applicants are under scrutiny for permission.

Privately-owned gas stations were allowed in Myanmar since June 2010, before which all gas stations were run by the government.
IFC Works with Myanmar Government to Generate Investment and Improve Business Environment
Friday, December 20, 2013 Comments (1)
In Hanoi:
Chu Van Anh
Phone: +844 3943 8745
E-mail: canh1@ifc.org

IFC Works with Myanmar Government to Generate Investment and Improve Business Environment

Naypyidaw, Myanmar, December 20, 2013—IFC, a member of the World Bank Group, today signed a memorandum of understanding with Myanmar’s Ministry of National Planning and Economic Development to support its efforts to improve the country’s investment policy and regulation framework. This will make it easier to do business in Myanmar and help stimulate domestic private sector growth and attract sustainable foreign investment.

IFC will work with the ministry on a new investment law and regulations to improve protection for both foreign and domestic investors and streamline investment approval procedures to promote a business enabling environment. By combining the two existing separate laws for local and foreign investors, the new law aims to create a level playing field for all businesses.

“The cooperation with IFC will help accelerate our continued efforts to create a more business-friendly environment for both domestic and foreign investors,” said U Aung Naing Oo, Director General of the Directorate of Investment and Company Administration, Ministry of National Planning and Economic Development. “We will be able to enhance our own investment policy and business regulations through this cooperation and hope to learn from international best practices.”

IFC will also help Myanmar implement investment climate reforms in top priority areas, including promoting a public-private dialogue platform to facilitate the reform process.

“Together with the World Bank, IFC is supporting the government’s economic reforms aimed at strengthening the private sector as a key driver for economic growth and employment in Myanmar,” said Vikram Kumar, IFC Resident Representative for Myanmar. “Improving Myanmar’s investment policy and strengthening the regulatory framework will encourage private sector investment and increased competition within Myanmar as the country becomes more integrated with ASEAN and the rest of the world.”

IFC is supporting the government’s market-oriented reforms by providing advisory services and investment to strengthen the private sector. This will create investment opportunities and jobs that will benefit the population and lead to greater shared prosperity. IFC is also working with the government and financial sector to improve access to finance for small and medium enterprises and to increase financial inclusion through microfinance. Efforts are also underway to assist with private sector involvement in infrastructure, with an initial focus on the power and telecommunications sectors.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org

Similar Documents

Premium Essay

Strategic-Management

...FACULTY OF BUSINESS MANAGEMENT MGT 790 STRATEGIC MANAGEMENT Course Outline 2011 Course Prescription Strategic Management is the process and practice of managerial decision making and implementation that seeks to create and maintain competitive advantage. In essence it determines the long term performance of a business and as such is the role of the senior executive members to refine but the responsibility of all to roll out. Included in the process is comprehensive environmental scanning, strategy formulation (strategic planning), strategy implementation, and monitoring. Students in this course will review how the strategic decision makers within an organisation first identify, define and analyse commercial problems and then develop practical and ethical solutions. It provides a practical guide for, and an initial experience in, strategy formulation and strategic management. Class time will be largely spent in lecture, discussion, case studies and experiential exercises. Students will learn from the theoretical literature, instructor, case studies, videos, research presentations, and from each other. The course materials explain and describe the different aspects, challenges, and stages of strategic management simply and clearly. Goals of the Course To examine and understand the nature and role of strategy, strategic management and strategic leadership within an organization. Learning Outcomes 1. To develop skills in strategic analysis, development...

Words: 1985 - Pages: 8

Premium Essay

Strategic Management

...Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can...

Words: 7313 - Pages: 30

Premium Essay

Strategic Management

...1.0 WHAT ARE THE ELEMENTS OF STRATEGIC MANAGEMENT? Strategic management consists of the analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages. The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Situation Analysis The situation analysis provides the information necessary to create a company mission statement. Situation analysis involves "scanning and evaluating the organizational context, the external environment, and the organizational environment" (Coulter, 2005). This analysis can be performed using several techniques. Observation and communication are two very effective methods. To begin this process, organizations should observe the internal company environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders. In addition, discussions, interviews, and surveys can be used to analyse the internal environment. Organizations also need to analyse the external environment. This would include customers, suppliers, creditors, and competitors. Several questions can be asked which may help analyse the external environment. It examines the company’s relationship with its customers and...

Words: 2003 - Pages: 9

Premium Essay

Strategic Management

...Strategic Management & Business Policy, 13e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management ...

Words: 5592 - Pages: 23

Premium Essay

Strategic Management

...Strategic Management Process MGT/498 ROLANDO ESPIRITU September 1, 2014 Strategic Management process is used to define a process by which the management team sets up a strategy to perform better among its competitors. The strategic management process is comprised of four phases. These phase assist a business with the development of a process that will enable them to aggressively compete with the competition within a given market. The four phase are 1) Basic Financial Planning, 2) Forecast Based Planning, 3) Externally Oriented Planning, and 4) Strategic Management (Wheelen & Hunger, 2010). Basic Financial Planning consists of managers putting of activities for weeks while the planning process is place to gather ideas to be used within a proposed budget. An evaluation is completed based on historic sales figures as well as the current environmental information. The budget is a short term budget used to get through one year of planning. Forecasting Based Planning, or long term planning, consists of budgets being created that expand for three to five years. This requires extensive planning based off current market information and stretched out over a given future time period. Many endless meetings take place in order to balance out the budget. Externally Oriented Planning is the stage where the top management takes over the planning. The budget is handed off and re-evaluated. The budget is scrutinized by top management officials that is often re-evaluated by an outside...

Words: 705 - Pages: 3

Premium Essay

Strategic Management

...Essentials of Strategic Management Authors: David Hunger & Thomas. L. Wheelen Book Review by Asik Kathwala © www.hrfolks.com All Rights Reserved 1 The Essentials of Strategic Management “The Essentials of Strategic Management” provides us with a short, concise explanation of the most important concepts and techniques in strategic management. It is a rigorous explanation of many topics and concerns in strategic management. These concepts are clearly explained by citing various examples. Precisely the book deals with the following. • A strategic decision-making model based on the underlying process of environmental scanning, strategy formation, strategy implementation and evaluation and control. • Michael Porter’s approach to industry analysis and competitive strategy • Functional analysis and functional strategies. R & D and R & D strategies which emphasize the importance of technology to strategy and product-market decisions. • Executive leadership and succession, reengineering, total quality management, MBO and action planning. • Social responsibility in terms of its importance to strategic decision making. © www.hrfolks.com All Rights Reserved 2 Basics concepts of strategic management The study of strategic management Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning)...

Words: 6642 - Pages: 27

Premium Essay

Strategic Management

...Elizabeth Huhn MGT/498-Strategic Management The Strategic Management Process Peter Braverso February 17, 2014 Strategic Management is necessary and integral part of every business, from small start-ups to large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger, 2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen & Hunger, 2010) Outside consultants may be used in this phase of the strategic process. All of these phases contribute to a smoother running organization and emphasize communication and clear roles within the organization. “...The real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.” Starbucks Coffee Company is a prime example of effective strategic planning. Starbucks has a longer list of strengths than weaknesses, although a longer list of threats than opportunities, there is awareness of these threats. Among its strengths, sound financial records tops the list, followed by being the...

Words: 686 - Pages: 3

Premium Essay

Strategic Management

...Strategic Management-2 Case Study Synopsis Of Case:-1) Competitive Advantage in new patent regime 2) Strategic leadership and competitive advantage 1) Competitive Advantage in New Patent Regime: A Study of the Indian Pharmaceutical Industry In the global business environment, traditional factors e.g labour costs and superior access to financial recourses and raw materials can still create a competitive advantage in the current competitive landscape. In the current landscape, the recourses, capabilities and the core competencies in the firm’s internal organization likely have a stronger influence on its performance than do conditions in the external environment. The IPI is one of the largest and most advanced among the developing countries. It is the 4th largest by volume i.e. around 8 percent and 11th largest in terms of value i.e. around 1.5 percent. The Indian pharmaceutical industry is a heterogeneous mixture of firms split between the organized and unorganized sectors. The control and support of the Indian government plays a critical role in the competitiveness of the IPI. According to Sampath (2006), areas of government support critical to the IPI include speed of processing of patent applications, R&D conducive environment, and reduced price Control, access of land for expansion and the patent amendment act, 2005. The government can also help increase the potential of the nascent venture capital industry in India, with an emphasis...

Words: 1714 - Pages: 7

Premium Essay

Strategic Management

...external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength 6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e. A strong industry An unstable environment A stable environment A weak industry A weak financial position 7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b. Stage 1 Stage 2 c. d. e. Stage 3 Stage 4 Stage 5 9. 10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration b. c. b. c. Divestiture Forward integration Cost leadership Related diversification 11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e. Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand Strategy Matrix QSPM. 12. Which of the following is not true about objectives? a. b. c. d. e. They should be communicated throughout the organization. They should have an appropriate time dimension. They should incorporate...

Words: 4249 - Pages: 17

Premium Essay

Strategic Management

...“Consultant Report On United Breweries Limited ” Student Name: Gangadharan Renganathan Student Id Course Subject : 1229047 : Master of Business Administration : Strategic Management Submitted To: William Naylor Table of Contents Introduction: ........................................................................................................................ 3 Objectives: ............................................................................................................................. 3 Recommendations: ............................................................................................................ 4 Prior Recommendation for future development: ................................................... 7 Conclusion: ............................................................................................................................ 7 Reference: ............................................................................................................................. 7 Appendix: .............................................................................................................................. 9 Introduction: United Breweries was founded on early 19th century. This group is operating more than 100 years. A Scotsman, Thomas Leishman in 1857, founded UB GROUP. He started this business as a big producer of beer from a south Indian based British Breweries. Thomas Leishman was founded the United Breweries Limited (UBL) on15th March...

Words: 2195 - Pages: 9

Premium Essay

Strategic Management

...SUMMARY 1. Firms use SMP to achieve strategic competitiveness(SC) & earn above average returns(AAR). -SC is achieved when firms develops & implements a value-creating strategy. -AAR provide the foundation needed in order to satisfy all of the firm’s stakeholders. 2. Since the nature of competition is different in the current competitive landscape, those making strategic decisions must adopt a different mind-set, which allows them to learn how to compete in highly turbulent & chaotic(disorganized) environments that produce a great deal of uncertainty. The globalization of industries in their markets and rapid & significant technological changes are the two primary factors that contribute to the turbulence (instability) of the competitive landscape. 3. Firms use 2 major models to help develop their vision & mission and then choose 1 or more strategies in pursuit of SC and AAR. (i) Industrial Organization (I/O) Model, assumptions: - firm’s external environment has large influence on the choice of strategies > do the firm’s internal resources, capabilities and core competencies. - thus, it used to understand the effects an industry’s characteristic can have on a firm when deciding what strategy or strategies with which to compete against rivals. - ARR are earned when the firms locates attractive industry or part of an industry and successfully implements the strategy dictated by the industry’s characteristics. (ii) Resource-Based model, assumptions: ...

Words: 655 - Pages: 3

Premium Essay

Strategic Management

...Strategic Management - Exam Three Study Guide Corporate Level Strategy Part I. Chapters 13 & 15 (pages 392-404, 450-459, 461-464) 1. Benefits and Costs of Concentration A. Benefits (Advantages): 1) Firms can master one industry environment (top managers acquire an in-depth knowledge of the industry) 2) All resources are put back into the business (creates sustainable competitive advantage) 3) There are typically lower overhead costs and fewer “layers” in the organization which leads to reduced “bureaucratic costs” B. Costs (Disadvantages): 1) There is a total dependency on the industry (the firm has all its eggs in one basket) 2) Firms tend to develop a “myopic” view and management doesn’t see change coming and therefore is unable to change when times get tough 3) Top managers are not challenged and may become bored and stagnant 4) The firm misses opportunities to leverage resources and capabilities in an area outside of the industry that may be more profitable 2. Vertical Integration A. What is vertical integration? Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers. Typically a firm does not vertically integrate unless by doing so it can either cut costs or create a differentiation advantage. B. What are the pros (benefits) and cons (drawbacks) of vertical integration? Benefits of Vertical Integration: 1) ...

Words: 2935 - Pages: 12

Free Essay

Strategic Management

...JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY SUMMARY Nokia, once a world leader in wireless telecommunications, has lost nearly 39% of its market share to its competitors and in some instances to no name companies. In 80s and 90s Nokia expanded through the acquisition of many other companies with various technologies. Due to this rapid expansion, Nokia lost focus of its ingenuity in wireless communications. However Nokia reorganized by selling most of its businesses which were not performing well and directed its focus once again to its wireless technologies. Acquisition of Sega in 2003 and then merger with Siemens AB in 2006 put Nokia once again in a place where it could compete its rivals. RIM’s blackberry and Apple’s iPhone are the major rivals and have a large market share from business users and consumers. * According to Nokia’s business strategy; the winning strategy is based upon the following factors. Best mobile devices regardless the price and geographical location * Provide extensive internet solutions on mobile devices * Enter into the markets by providing business mobility solutions to the corporate users Analysis: I believe that Nokia’s strategy is a winning strategy for the following reasons: * Business solutions: Innovative Business mobility solutions will attract the corporate users, since Nokia devices are based upon a very stable...

Words: 408 - Pages: 2

Premium Essay

Strategic Management

...Neil Ritson Strategic Management Download free ebooks at bookboon.com 2 Strategic Management Strategic Management © 2011 Neil Ritson & Ventus Publishing ApS ISBN 978-87-7681-417-5 Download free ebooks at bookboon.com 3 Strategic Management Contents 1 Introduction 7 2 The Basis of Strategy: Structure 8 2.1 Introduction –definition ‘Structure’ is the allocation and control of work tasks 8 2.2 Functional Structure 8 2.3 Divisional structure 10 2.4 Product structure 11 2.5 Geographical structure 12 2.6 Matrix structure 12 2.7 Complex forms of organisation 14 3 The Levels and Formulation of Strategy 17 3.1 Introduction - definition 17 3.2 Process of strategy 17 3.3 Levels of strategy 19 3.4 Types of Strategy 19 3.5 Other Types of Strategic formulation 22 4 Schools of Strategy 24 4.1 Introduction - Definition - there are three ‘schools’ of strategy 24 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. In 2010, our MiM employment rate was 95% within 3 months of graduation*; the majority of graduates...

Words: 11961 - Pages: 48

Free Essay

Strategic Management

...BUSI 1317: Srategic management | Lincoln Electric | The Welding Industry’s Titan | | | | 1st December, 2014 ABSTRACT The purpose of this paper is to analyze Lincoln Electric’s overall strategy and business model and evaluate how generalizable is the company’s business model in other industries, specifically focusing on feasible strategies for one of the fastest developing country, India. | Contents Lincoln Electric’s Background 2 Recent Reporting 2 Main Features of the Lincoln Electric Business Model 2 Company Philosophy 2 Overall Strategy 3 Compensation, Leadership and Communication 3 How generalizable is Lincoln Business Model to other industries? 4 How generalizable is the Lincoln’s approach to India? 5 Employment System 5 Incentive System 6 Conclusion 6 Appendices 7 Exhibit 1: Hofstede's Dimensions Comparison - India & USA 7 Exhibit 2: India and U.S GDP Comparison 7 Bibliography 8 Lincoln Electric’s Background Lincoln Electric Company is the largest manufacturer of welding equipment in the world and has been in existence for over 100 years since 1895. The founder, John C. Lincoln started the business selling his own designed electric motors with the $200 he made from redesigning Herbert Henry Dow’s engine (Paul F. Buller, 2006). The company grew steadily, and in 1906 sales rise to $50,000 a year. John expanded his work force and in 1907, his brother, James F. Lincoln joined the company as a senior manager and introduced...

Words: 2042 - Pages: 9